U.S.-China Audit Spat May Spill Over

As U.S. regulators and Chinese authorities spar over the right to oversee audits of companies in China, U.S. multinational firms like Sanmina Corp. could suffer collateral damage.

Sanmina, a San Jose, Calif., electronics maker, has major operations in China and is partly audited by KPMG Huazhen, which is one of five Chinese accounting companies facing legal action from the U.S. Securities and Exchange Commission over their refusal to...